Jump to Navigation

Key components of a residential real estate contract

Buying or selling a home in Florida is nearly always accompanied with signing a contract. While these documents provide legal protection for both the buyer and seller, many people are unaware of the items to look for to guarantee that protection.

For example, Bankrate.com reports that confusing or unclear language can lead to losing a sale, as was the case when a couple in Florida offered $620,000 for a home contingent upon the language that the property could not appraise for less than that amount. The seller secured an appraisal above that number, and the buyers got an appraisal for much less. When the buyers canceled the sale, the seller took the couple to court, claiming breach of contract. A state court of appeals ruled that the buyers were within their rights, as the contract language inferred that no appraisal could come in below the sale price.

Experts advise that a real estate contract should include clarity in a number of sections, including the following: 

  •        The inspection: There should be a contingency to protect the buyer in the event that the inspection turns up unsatisfactory results.
  •        Financing: Sellers should be aware that sections related to financing could indicate that a buyer can keep his or her earnest money if a loan falls through.
  •        Closing costs: Who is responsible for paying the closing costs? This is usually negotiated during the sale.
  •        Selling an existing home: Many contracts are contingent upon a buyer selling an existing home.
  •        Warranty: Is there a home warranty in place to cover the cost of certain repairs?

Florida Realtors points out that buyers should especially pay attention to as-is home sale contracts. These include a section that dictates that if a buyer moves into a home before closing, then the buyer accepts the property in the condition it is in, no questions asked. Reading the fine print on any contract or having a professional explain the documents is advisable.

No Comments

Leave a comment
Comment Information
  • facebook
  • facebook
  • twitter
  • Google+

Contact Us

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Cuevas, Garcia & Torres, P.A.
Attorneys at Law

Miami
7480 S.W. 40th Street
Suite 600
Miami, FL 33155
Toll Free: 877-801-4135
Phone: 305-461-9500
Fax: 305-448-7300
Map and Directions

Midtown Miami
3401 North Miami Avenue 
Suite 209
Miami, FL 33127 
Map and Directions

FindLaw Network